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Investing.com - Mizuho (NYSE:MFG) raised its price target on Qorvo Inc (NASDAQ:QRVO) to $87.00 from $84.00 on Wednesday, while maintaining its Neutral rating on the semiconductor company’s stock. According to InvestingPro analysis, Qorvo appears undervalued at current levels, with the stock showing strong momentum with a 21% gain year-to-date.
The price target increase follows Qorvo’s strong June quarter results and better-than-consensus September quarter guidance, with revenues expected to increase approximately 25% quarter-over-quarter to $1.03 billion. Despite the positive near-term outlook, the company maintained its fiscal 2026 expectations amid uncertainties related to tariffs, order pull-ins, and planned exits from certain China markets. InvestingPro data reveals the company maintains a healthy financial position with a current ratio of 2.77 and operates with moderate debt levels.
Qorvo’s High Performance Analog (HPA) segment showed particular strength, with Defense & Aerospace and Satellite communications spending increasing. The company’s design funnel grew by $2 billion quarter-over-quarter to $7 billion, according to Mizuho’s analysis.
Gross margins reached 44% in the June quarter and are expected to improve by approximately 500 basis points to 49% in the September quarter, with fiscal 2027 margins projected at 50%. These improvements stem from better fabrication facility utilization following closures in Costa Rica and North Carolina.
Looking ahead, Qorvo expects its HPA segment to grow double digits year-over-year in fiscal 2026, while its Connectivity & Sensors Group is projected to grow low single digits with tailwinds from automotive and WiFi 7 applications. The Advanced Cellular Group is expected to decline slightly year-over-year as Android exits offset iPhone content gains, with approximately $175 million in revenue exits anticipated in both fiscal 2026 and 2027.
In other recent news, Qorvo Inc has reported financial results that have exceeded expectations, prompting several analyst firms to raise their price targets for the company. Piper Sandler increased its price target to $125, highlighting that Qorvo’s June quarter financial results surpassed Wall Street expectations. Similarly, Stifel raised its price target to $88, noting that Qorvo’s fiscal first-quarter 2026 results exceeded consensus expectations and that the company provided second-quarter guidance above Wall Street estimates. TD Cowen increased its target to $95, citing strong radio frequency demand from flagship smartphones as a key driver behind the company’s earnings beat and raised guidance. Loop Capital also raised its price target to $90, mentioning that Qorvo’s first-half fiscal 2026 revenue was approximately 5% ahead of target, with gross margin improvements exceeding plans. Needham raised its target to $104, attributing Qorvo’s strong quarterly performance and raised guidance to content gains in Apple (NASDAQ:AAPL) products, with internal modem plans reportedly accelerating. These developments reflect a positive sentiment among analysts regarding Qorvo’s recent financial performance and future prospects.
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